Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The share capital of Tarik Bhd as at 1 January 2018 consisted of 40,000,000 ordinary shares of RM40,000,000. During the year, Tarik Bhd made the
The share capital of Tarik Bhd as at 1 January 2018 consisted of 40,000,000 ordinary shares of RM40,000,000. During the year, Tarik Bhd made the following transaction: - 30 April 2018, Tarik Bhd bought back 10,000,000 of its shares from the open market at the prevailing market price of RM8.00 per share. These shares were held as treasury shares. - On 30 October 2018, Tarik Bhd sold 6,000,000 treasury shares in the open market price at an average price of RM10.00 per share. In 2017, Tarik Bhd issued 4,000,000 units of warrants to bond holders that entitle the holders to subscribe for ordinary shares of the company. Each unit of warrant entitles its holder to one ordinary share at an exercise price of RM6.00 per share. As at 31 December 2018 , none of the warrants have been exercised. The average market prices of Tarik Bhd's ordinary shares for the year was RM9.00 and this can be assumed as their fair value. The profit attributable to ordinary shares of Tarik Bhd for the year ended 31 December 2018 is RM96,000,000. Required: Compute the basic EPS and the diluted EPS of Tarik Bhd for the year ended 31 December 2018. ( 6 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started